Tesla plans to split stock 3-for-1

According to the company's most recent annual proxy statement, Tesla intends to split its stock three-for-one. "We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity," the company said in the proposal.

A stock split occurs when a corporation divides its shares into more, smaller shares. According to the statement, all Tesla employees have the option of receiving equity, so the split would be in the interest of giving employees "more flexibility in managing their equity," which would "maximise stockholder value."

According to the statement, splitting the stock would make it more accessible to interested retail investors. Tesla stock has increased 43.5 percent since the company's last stock split nearly two years ago in August 2020.

Stock splits are popular among tech companies right now. Amazon's 20-for-1 split has just taken effect, and Google has a split planned for later this summer as well.

According to the statement, board member and Oracle co-founder Larry Ellison will leave Tesla's board at the end of his term this year, with no immediate plans to replace him. Elon Musk now owns 23.5 percent of Tesla, while Ellison owns 1.5 percent